Question
PP.71A small manufacturer of specialty welding equipment has developed a combination production plan for the next four quarters, as seen below: Supply/Demand Info Pre-Q1 Q1
PP.71A small manufacturer of specialty welding equipment has developed a combinationproduction plan for the next four quarters, as seen below:
Supply/Demand Info | Pre-Q1 | Q1 | Q2 | Q3 | Q4 |
Forecast (demand) | 4,400 | 4,500 | 4,800 | 5,000 | |
Regular production | 4,400 | 4,600 | 4,600 | 4,600 | |
Subcontract production | 200 | 200 | 100 | ||
Ending inventory | 300 | 300 | |||
Hired employees | 2 | ||||
Fired employees | |||||
Total employees | 44 | 44 | 46 | 46 | 46 |
The table below shows additional relevant information:
CapacityInformation & Cost Variables | |
Production rate (units/employee/quarter) | 100 |
Subcontractor capacity (units/quarter) | 470 |
Regular production cost/unit | $71 |
Holding cost/unit/quarter | $15 |
Hiring cost/employee | $700 |
Firing cost/employee | $2,550 |
Subcontract cost/unit | $129 |
What is the overall total cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total subcontract cost for this production plan? (Displayyour answer to the nearest whole number.) What is the total holdingcost for this production plan? (Displayyour answer to the nearest whole number.) What is the total hirecost for this production plan? (Displayyour answer to the nearest whole number.) What is the total firecost for this production plan? (Displayyour answer to the nearest whole number.)
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